Square Enix closes cloud gaming-based Shinra Technologies division

It looks like Square Enix is jumping off the cloud gaming train.

The publisher has closed Shinra Technologies, a division working on cloud-based technologies that would allow games to bypass the forced limitations of native hardware and deliver more impressive graphics, according to Engadget. Square Enix will lose about $16.8 million by closing Shinra.

Square Enix made the decision to close the division after it failed to find capital from outside investors. Shinra was testing its cloud-gaming technology with Google Fiber in Kansas City and Verizon Fios in Texas.

This is a big blow to cloud gaming, a technology that many once thought would be the future of the industry. However, virtual reality seems to attract all of the buzz these days. Perhaps we’ll see companies make new strides in cloud gaming in the coming years as Internet bandwidth continues to improve across the world.